Rio Tinto Iron Ore General Manager expects more M&A activity
In preparation the ‘Mergers and Acquisitions in Mining’ conference October 30 and 31 in Sydney, Cody Whipperman, the General Manager of Business Development for Rio Tinto Iron ore, expressed his view that iron ore M&A will pick up as a result of lower prices and decreasing share values:
We’ve come off extremely high prices for global iron ore, driven primarily, if not exclusively, by demand from China. Inflated asset and equity vales have begun to deflate back to more reasonable levels, which should continue if the downturn persists and project financing remains difficult. The last few years have not been a great M&A environment for those seeking value. The next few years should be better and those with cash or access to financing should be able to take advantage of these opportunities and find real value. So, I think the next few years will prove to be good for value-driven M&A activity.